From Capital Economics:

The introduction of capital controls in Cyprus risks disrupting these flows, which may ultimately affect business activity and hit vital capital inflows. In marked contrast to Russia, Ukraine’s economy is already on the brink of a balance of payments crisis. The current account deficit is currently at a record high of 8% of GDP, and on top of this Ukraine is facing an onerous external debt repayment schedule, with a total of over $55bn due to be repaid this year. We estimate that Ukraine’s total external financing requirement over the next 12 months stands at close to 40% of GDP. At the same time, Ukraine’s FX reserves have dropped below three months of import cover, which is the minimum recommended reserve coverage by the IMF. To make matters worse, the economy slipped back into recession towards the end of last year. And despite all this, there has been little progress in negotiations with the IMF over a new financing package.

Summing up, Capital Economics said:

The upshot of all this is that although the direct impact from the levy on deposits in Cyprus on the Ukrainian economy is likely to be limited, wider vulnerabilities mean that the Cypriot crisis may still be enough to tip Ukraine into a financial crisis of its own. Without an IMF deal in place, Ukraine is extremely exposed if the Cypriot bailout triggers a fresh spike in financial market tensions.

On the ground in Kiev, the Cyprus crisis ripples are not sparking panic just yet, but they are being felt.

In spring 2008, the Yuliya Tymoshenko government annulled the contract but it has been revived after a positive decision by the Stockholm Arbitration Court. Donetsk oligarch Rinat Akhmetov is searching for joint investors in the Vanco project.

Royal Dutch Shell won a tender in 2012 in a consortium with other international petroleum companies for the exploration of offshore deep-water reserves in the Black Sea’s Skifska field. They agreed to pay an upfront premium of $300 million upon signing the PSA and pledged to invest $200 million in the exploration phase.

The fourth policy, probably the most important, is supporting an expansion of gas production

Chairman of Royal Dutch Shell Ukraine Graham Tiley told the Ukrainian edition of Forbes magazine last year that it is entirely feasible for a three-fold increase in gas production from the current 20 billion cubic meters.

In the 1960s and 1970s, Ukraine was the biggest gas producer in the Soviet Union and much of this infra-structure of pipelines, underground storage and expertise remains. From the late 1970s the center of Soviet energy moved to Western Siberia and Central Asia.

One of the companies supporting Ukraine’s drive for energy independence is Cub Energy, a relatively small player in Ukraine’s energy sector registered in Toronto, a city it chose believing it offered better opportunities than London or Oslo.

May 9 Victory Day
…Owning to the closeness of this holiday to May Day, often the first week of May is weeklong holiday for the whole country. It is a very important holiday for all the Ukrainians, while you hardly find a family, which would not suffer from Nazis in the World War II. Large military parades are held, wreathes and flowers are put on graves of soldiers and those who died in war. Family and friends congratulate veterans who wear their uniforms and medals on this day.